Cost goes up by 20%, Metro project to complete in R 631 cr

Barely off the ground and cost of Lucknow Metro Rail project has already gone up by ` 90 crore. From ` 541 crore at the outset, the cost of executing civil work on the eight-kilometre elevated priority section, contract for which was awarded to Larsen and Toubro on September 25, now stands at ` 631 crore.

Technocrats said though the 20% hike is steep, there is nothing unusual about it.

What appeared odd though is Lucknow Metro Rail Corporation (LMRC) managing director Kumar Keshav’s cryptic reply. “We do not discuss tender details publicly,” he said when asked about factors that led to cost escalation.

LMRC might like to keep its reasons under wraps but sources said the increase did seem to be on the higher side.

“Price escalation is nothing unusual but then we have to justify and give reasons for the same. In this context, I would not be able to comment unless and until I know the details of the scope of work and justification offered for the hike,” said a senior railway official requesting anonymity.

Delhi Metro Rail Corporation (DMRC), which is also the interim consultant to LMRC for the project, prepared the tender document for the priority section and hence there appears to be a conflict of interest, point out sources.

The delay by LMRC in having a full-time consultant for the project further lends credence to this theory.

“DMRC experts presided over the bid process for awarding the work contract. An executive engineer of the PWD now with the LMRC participated in it as the latter’s nominee,” recalled an official.

Keshav, however, brushed aside all such controversies saying that the project would be executed on time.

The French agency has begun work on the design and location of the eight metro stations in consultation with LMRC officials, he said.

“We would acquire the land required for the project once we freeze the layout. The state government owns the major chunk of land we need for the purpose,” he added.